House of Commons portcullis
House of Commons
Session 2003 - 04
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Other Bills before Parliament

Finance Bill


 

Finance Bill

 
 

EUROPEAN CONVENTION ON HUMAN RIGHTS

Mr Chancellor of the Exchequer has made the following statement under section

19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Finance Bill are compatible with the Convention

rights.

 
Bill 89 53/3
 
 

 

Finance Bill

 

 
 

The Bill is divided into two volumes. Volume I contains Clauses and Schedules 1 to

4 to the Bill. Volume II contains Schedules 5 to 40 to the Bill.

Contents

Part 1

Excise duties

Tobacco products duty

1   

Rates of tobacco products duty

Alcoholic liquor duties

2   

Rate of duty on beer

3   

Rates of duty on wine and made-wine

4   

Duty stamps for spirits etc

Hydrocarbon oil etc duties

5   

Rates

6   

Road fuel gas

7   

Sulphur-free fuel

8   

Definition of “fuel oil”

9   

Mixing of rebated oil

10   

Bioethanol

11   

Biodiesel

12   

Fuel substitutes

13   

Warehousing

14   

Treatment of certain energy products

Betting and gaming duties

15   

General betting duty: pool betting

16   

Rates of gaming duty

Amusement machine licence duty

17   

Amusement machine licence duty: rates

 
Bill 89 53/3
 
 

Finance Bill

iv

 

Vehicle excise duty

18   

Fee for payment of duty by credit card

Part 2

Value added tax

19   

Disclosure of VAT avoidance schemes

20   

Groups

21   

Reverse charge on gas and electricity supplied by persons outside UK

22   

Use of stock in trade cars for consideration less than market value

Part 3

Income tax, corporation tax and capital gains tax

Chapter 1

Income tax and corporation tax charge and rate bands

Income tax

23   

Charge and rates for 2004-05

24   

Personal allowances for those aged 65 or more

Corporation tax

25   

Charge and main rate for financial year 2005

26   

Small companies’ rate and fraction for financial year 2004

27   

Corporation tax starting rate and fraction for financial year 2004

28   

The non-corporate distribution rate

Trusts

29   

Special rates of tax applicable to trusts

Chapter 2

Corporation tax: general

Transfer pricing

30   

Provision not at arm’s length: transactions between UK taxpayers

31   

Exemptions for dormant companies and small and medium-sized enterprises

32   

Special applications of paragraph 6 of Schedule 28AA to the Taxes Act 1988

Penalties: temporary relaxation

33   

Provision not at arm’s length: temporary relaxation of liability to penalty

Thin capitalisation

34   

Payments of excessive interest etc

35   

Elimination of double counting etc

 
 

Finance Bill

v

 

36   

Balancing payments and elections to pay tax instead

Transfer pricing and thin capitalisation: commencement

37   

Commencement and transitional provisions

Expenses of companies with investment business and insurance companies

38   

Expenses of management: companies with investment business

39   

Accounting period to which expenses of management are referable

40   

Expenses of insurance companies

41   

Related amendments to other enactments

42   

Commencement of sections 38 to 41

43   

Companies with investment business: transitional provisions

44   

Insurance companies: transitional provisions

Amounts reversing expenses of management deducted

45   

Amounts reversing expenses of management deducted: charge to tax

Power to make consequential amendments

46   

Power to make consequential amendments

Insurance companies: miscellaneous

47   

Insurance companies etc.

Loan relationships and derivative contracts

48   

Loan relationships: miscellaneous amendments

49   

Derivative contracts: miscellaneous amendments

Accounting practice

50   

Generally accepted accounting practice

51   

Use of different accounting practices within a group of companies

52   

Amendment of enactments that operate by reference to accounting practice

53   

Treatment of expenditure on research and development

54   

Trading profits etc. from securities: taxation of amounts taken to reserves

Miscellaneous

55   

Duty of company to give notice of coming within charge to corporation tax

56   

Relief for community amateur sports clubs

Chapter 3

Construction industry scheme

Introduction

57   

Introduction

58   

Sub-contractors

 
 

Finance Bill

vi

 

59   

Contractors

Deductions on account of tax from contract payments to sub-contractors

60   

Contract payments

61   

Deductions on account of tax from contract payments

62   

Treatment of sums deducted

Registration of sub-contractors

63   

Registration for gross payment or for payment under deduction

64   

Requirements for registration for gross payment

65   

Change in control of company registered for gross payment

66   

Cancellation of registration for gross payment

67   

Registration for gross payment: appeals

68   

Registration for payment under deduction: cancellation and appeals

Verification, returns etc and penalties

69   

Verification etc of registration status of sub-contractors

70   

Periodic returns by contractors etc

71   

Collection and recovery of sums to be deducted

72   

Penalties

Supplementary

73   

Regulations under this Chapter: supplementary

74   

Meaning of “construction operations”

75   

Meaning of “the Inland Revenue” etc and delegation of Board’s functions

76   

Consequential amendments

77   

Commencement and transitional provision

Chapter 4

Personal taxation

Taxable benefits

78   

Childcare and childcare vouchers

79   

Exemption for loaned computer equipment

80   

Vans

81   

Emergency vehicles

82   

European travel expenses of MPs and other representatives

Gift aid

83   

Giving through the self-assessment return

Gifts with a reservation

84   

Charge to income tax by reference to enjoyment of property previously

owned

 
 

Finance Bill

vii

 

Miscellaneous

85   

Relief where national insurance contributions met by employee

86   

Income of spouses: jointly held property

87   

Minor amendments of or connected with ITEPA 2003

Chapter 5

Enterprise incentives

88   

Enterprise investment scheme

89   

Venture capital trusts

90   

Corporate venturing scheme

91   

Enterprise management incentives: subsidiaries

Chapter 6

Exemption from income tax for certain interest and royalty payments

Introductory

92   

Introductory

Exemption from income tax

93   

Exemption from income tax for certain interest and royalty payments

94   

Permanent establishments and “25% associates”

Exemption notices

95   

Interest payments: exemption notices

Payment without deduction

96   

Payment of royalties without deduction at source

97   

Claim for tax deducted at source from exempt interest or royalty payments

Special relationships and anti-avoidance

98   

Special relationships

99   

Anti-avoidance

Supplementary

100   

Consequential amendments

101   

Transitional provision

Chapter 7

Savings income: double taxation arising from withholding tax

Introductory

102   

Introductory

 
 

Finance Bill

viii

 

Credit etc for special withholding tax

103   

Income tax credit etc for special withholding tax

104   

Capital gains tax credit etc for special withholding tax

105   

Credit under Part 18 of Taxes Act 1988 to be allowed first

Computation of income etc

106   

Computation of income etc subject to special withholding tax only

107   

Computation of income etc subject to foreign tax and special withholding tax

Certificates to avoid levy of special withholding tax

108   

Issue of certificate

109   

Refusal to issue certificate and appeal against refusal

Supplementary

110   

Supplementary

Chapter 8

Chargeable gains

111   

Restriction of gifts relief etc

112   

Private residence relief

113   

Authorised unit trusts: treatment of umbrella schemes

Chapter 9

Avoidance involving loss relief or partnership

Individuals benefited by film relief

114   

Individuals benefited by film relief

115   

“Disposal of a right of the individual to profits arising from the trade”

116   

“The losses claimed” and “the individual’s capital contribution to the trade”

117   

Computing the chargeable amount

118   

“Film-related losses” and “non-taxable consideration”

Individuals in partnership: restriction of relief

119   

Restriction of relief: non-active partners

Individuals in partnership: exit charge

120   

Losses derived from exploiting licence: introductory

121   

Charge to income tax

122   

Definitions for purposes of section 121

123   

Disposals to which section 120 applies

124   

“A significant amount of time”

Companies in partnership

125   

Companies in partnership

 
 

 
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Revised 6 April 2004